Tax incentives are introduced to entrepreneurs engaged in agriculture and agro-processing sectors, Azernews reports, referring to the State Tax Service (STS) under the Ministry of Economy of Azerbaijan. The aim of tax incentives is to replace imported products, optimize cost and reduce prices.

“As it is known, against the backdrop of processes happening in the world economy recently, price increases of a series of agricultural products have been observed. Taking these into account, tax incentives have been provided to taxpayers engaged in agricultural processing activities in the latest amendments to the Tax Code,” STS says.

Under the amendments, food producers, after the adoption of the relevant incentives by the Cabinet of Ministers, will be exempt from tax on half of their profits for a period of seven years, as well as property and land taxes.

“Currently, entrepreneurs engaged in the production of a number of products benefit from incentives provided in the Tax Code under the investment promotion document. However, since the investment incentive certificate is issued to start-up taxpayers and most of the taxpayers who are doing business are not start-up taxpayers, they cannot benefit from the incentives.

Taking into account such cases, in order to ensure the stability of the activities of taxpayers operating in the agricultural sector and to stimulate the implementation of their next investment projects, tax concessions of the same amount are given to taxpayers who have an investment promotion document. As a result, both new and existing enterprises have received the same amount of tax benefits.”